Tuesday, May 28, 2013

Wheat price revival questions hedge fund selling




Hedge funds returned to taking a more negative stance on agricultural commodities, largely through increasing bets on falling values of sugar, which have paid off, and of wheat, in which they have been caught out.

Managed money, a proxy for speculators, decreased its net long position in US traded agricultural commodity futures and options by more than 47,000 contracts in the week to last Tuesday, regulatory data show.  The decrease, the first in six weeks, reflected in part a return to taking a more negative stance on corn, after a week in which US farmers planted the grain at a record pace, easing concerns over a yield penalty from sowings which had been running at a historically slow level….

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